Dear Fellow Investor,

A recovering economy? How can that be?

After months and months of dismal economic data -- falling home prices, rising unemployment and withering consumer confidence -- it's hard to believe that's there's an economy on the verge of an economic turnaround.

But if you've been reading my Inside China Dispatches for the past three months, then you know exactly which economy I'm talking about and how it's overcoming the global recession. I've been talking about how China's economy is bottoming, and how its stock market is decoupling from other major markets around the world.

What's interesting is that this realization is just now dawning on others.

Case in point, the World Bank noted this week that the Chinese economy is likely to bottom in the middle of 2009. And it's been forecast that China could post economic growth of around 7% this year.

What's driving China's economic turnaround? The country's $586 billion stimulus plan.

With the Chinese government injecting funds into the country's economy since last November, we're finally seeing the fruits of this labor. Just take a look at some of the positive developments in China right now:

• Industrial production expanded for the first time in six months in March.
• Shanghai's international shipping traffic rose for the first time in seven months, as a result of tax cuts for exporters.
• Private investment is back to pre-crisis levels, driving rebounds in electricity and steel output, as well as consumer confidence.

All these positive signs lead me to believe that China could achieve 7% to 8% economic growth this year, with the country's full economic turnaround coming in the second half of 2009.

The Time to Prepare Is Now

Since stock markets tend to discount the future six months out, now is the best time to be picking up strategic long-term bets. We're already seeing this play out in the Shanghai stock market, as it was up 33% in the first quarter of 2009.

In fact, if you'd have been following my advice over the past three months, investing in Chinese companies in preparation for the economic turnaround in China in the second half of the year, then you'd be sitting pretty with a nice chunk of change.

Just take a look: Two investors who had lost nearly 20% of their wealth in 2008 decided to reinvest $100,000 of their IRA money in January in hopes of making back what they lost in 2008. These two investors, though, took two very different paths to recover.

One investor placed his money in an S&P 500 index fund, hoping that the U.S. stimulus plan would drive U.S. stocks higher. The result? In the first quarter, this investor watched his $100,000 shrink 8% to $92,000.

The other investor saw his path to recovery beginning in China. So he invested his $100,000 in China stocks betting that the country's strong financial position and internal growth would spur Chinese stocks higher. The result? At the end of the first quarter, the China investor saw his investment increase 33% to $133,000.

I don't know about you, but after last year, I definitely want to see my investments move higher this year -- not lower!

And that's why I've been stressing all year that the best way to make money in 2009 is to pick up shares in Chinese companies benefiting from China's economic strength and stimulus package.

Just take a look at how my top China Strategy recommendations fared in the first quarter of 2009:

• A Major Chinese ETF, up 45%
• The Google of China, up 35%
• The Leader in Online Travel in China, up 15%
• China's Largest Airline, up 14%

During that same time period, our first investor was losing thousands of dollars. Do you now understand why I've been stressing the importance of investing in China? And don't you think it's time to say good-bye to losing investments and hello to a new world of profits?

If so, take a few minutes now and join China Strategy today! And let me show you the best ways to profit going forward.

Great News!

What's great is that it's not too late to jump on the China bandwagon. When the Chinese economy bottoms in the second half of 2009, we're going to see Chinese investments move even higher.

So the 33% bump up during the first quarter is going to look like a drop in the bucket compared to the profits that investors in China are going to experience later this year.

Don't miss out on the incredible profits to be made in China this year! Join China Strategy, rest assured that your portfolio will be directly aligned to take advantage of the strength in Chinese companies this year.

Sincerely,

Robert Hsu